Perfect competition - Theme 3
- Created by: Yzaman
- Created on: 25-02-18 20:07
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Perfect competition
- Many small firms
- Homogeneous product
- No barrier to entry/exit]
- High degree of competition
- Price takers
Advantages
- Long run, lower price (P=MC) so alloative efficency
- Firms produce at bottom of the AC curve…
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